The recent raids on Jindal Steel and Power Ltd (JSPL) by the Central Bureau of Investigation (CBI), which is probing the firm’s alleged link to the coal allocation scam, have not affected the company’s operations.
“Business is going on as usual. There is absolutely no reason for our business to get distracted in any form. We are confident of what we are doing now and what we have done in the past,” Ravi Uppal, Managing Director and Chief Executive officer of JSPL, told Business Line .
On June 11, the CBI had booked businessman-turned-Congress Member of Parliament Naveen Jindal and his company, JSPL, for alleged false representation of facts while seeking coal block allocations from the Government.
The Rs 20,220-crore conglomerate now aims to commission 2,400 MW of additional capacity at Tamnar in Chhattisgarh in the current financial year. JSPL already has a 1,000-MW thermal power plant in the same town. The new capacities will be set up in four batches of 600 MW each, costing the private developer about Rs 13,200 crore.
“The first unit would be synchronised around August 15. The second unit will go on stream by October, and the third by January-end. We hope to complete the last unit by March,” Uppal said.
The firm is also looking to seal medium- and long-term power purchase agreements (PPAs) with State utilities. “We should be able to sign PPAs,” said Uppal, adding that a few States, such as Kerala and Punjab, had offered bids to buy electricity.
JSPL has already secured the necessary coal supply for the first two units and has applied for fuel for the remaining capacity.
“In the interim, we will import coal and also mix it with coal rejects. We have applied to the Government to allow us to produce 25 per cent more from our existing mines,” Uppal said.
According to norms, a miner is allowed to raise output by 25 per cent in operational mines without having to renew green clearances, subject to the Coal Ministry’s approval.
The Naveen Jindal-promoted firm is also aggressively moving ahead in its overseas projects. “We are hoping to commission our Oman steel plant by the end of October,” Uppal said.
Currently, the 1.5-million-tonne (mt) direct-reduced iron plant is under operation. (This will produce input for the steel-making process). A 2-mt steel melt-shop is under construction too.
JSPL will also set up a 1-mt re-bar mill at the same location in Oman, which will be ready in 18 months.